U.S. Mint quadruples American Eagle silver coin allocation
The U.S. Mint said on Monday Jan. 11th 2015, it set the first weekly allocation of 2016 for American Eagle silver coin sales at 4 million ounces, roughly four times the amount rationed in the last five months of 2015, after a surge in demand.
The mint ran out of American Eagle silver coins in July due to a "significant" increase in demand as spot silver prices fell to a six-year low.
The bullion coins are bought by authorized dealers who then sell to the general public at a premium, which changes according to supply and demand. The coins are viewed as a more affordable form of investment in physical bullion than the much larger bars.
Inventory was replenished in August and sales resumed. But the coins were on weekly allocations of roughly 1 million ounces for the remainder of the year due to low supplies.
The U.S. Mint was not alone in limiting sales. The unexpected surge in demand put the global silver-coin market in an unprecedented supply squeeze, forcing other mints around the world to ration sales, while U.S. buyers had to look abroad for supplies. Spot silver was trading around $14 per ounce on Monday, hovering above the 6-1/2-year low of $13.60 hit in December.
See more Silver Coins available for auction at www.usauctionbrokers.com
Article by Reporting by Marcy Nicholson - Link to article - http://www.reuters.com/article/silver-coins-usmint-idUSL2N14V1K220160111